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Friend of mine has gotten into an accident (rear-ended) with her Mother's car. The police report has her information on the green side and other driver's information on the black side. She is worried to call the insurance because her driver's licence shows the same address (even though she lives/works away from home and was just borrowing the car temporarily) and she is not included in parent's insurance as a second driver

Has anyone here been in a similar situation before? I think she should make a claim regardless specially since she's not at fault, but double checking since u never know what to expect with insurance

should be okay so long as she can prove she lives at the other address. I know that typically if you live in the same house you MUST be on the insurance, or you must sign a waiver saying you will not drive that car/etc.

Also, the daughter shouldn't be calling the insurance company, the mother should.

If an unlisted driver has a record outside the tolerance of the company insuring the car, the company will often deny the claim on the basis that if the driver was reported, they would not have offered coverage in the first place.

If the unlisted driver was not reported just to dodge paying extra premium or to avoid rating the vehicle in a pricey area, they can take a hard line as well. I had a situation where a 80 yr old couple had 6 cars. They insisted they were all for their own personal use. They lived well outside the city and were retired. It came to light, through a claim, that they put cars into their name for their kids and grandchildren who lived in city.
The company denied the claim (grandson wrote off 'his' brand new mustang) and cancelled the policy for misrepresentation.

For your friend, simple fact is that her insurance company will be notified anyways. (police generally send collision report to both insurance companies involved). Call them and report it and explain the situation.

She should get her licence showing her true address, wherever it is. If she is going to borrow the car regularly, get listed on the policy. Her opinion of 'temporary' may be different from the insurance company's.

Hey hockeyfan, somewhat OT but I've always wondered this, having been told by someone outside of the industry. Is it in fact true that the onus of reporting is on you? Like if I get a speeding ticket, do I have to tell the insurance company? I know people just keep quiet and are happy that their renewal comes with no premium change. Is it because the ins company doesn't know and can they then deny a claim saying hey you didn't report a ticket, the underwriting for you then is void, goodbye?

If an unlisted driver has a record outside the tolerance of the company insuring the car, the company will often deny the claim on the basis that if the driver was reported, they would not have offered coverage in the first place.

If the unlisted driver was not reported just to dodge paying extra premium or to avoid rating the vehicle in a pricey area, they can take a hard line as well. I had a situation where a 80 yr old couple had 6 cars. They insisted they were all for their own personal use. They lived well outside the city and were retired. It came to light, through a claim, that they put cars into their name for their kids and grandchildren who lived in city.
The company denied the claim (grandson wrote off 'his' brand new mustang) and cancelled the policy for misrepresentation.

For your friend, simple fact is that her insurance company will be notified anyways. (police generally send collision report to both insurance companies involved). Call them and report it and explain the situation.

She should get her licence showing her true address, wherever it is. If she is going to borrow the car regularly, get listed on the policy. Her opinion of 'temporary' may be different from the insurance company's.

They had verbally told the ins company she won't be driving, never signed a paper on it. If the police report is going to the insurance company anyways then I guess there is no point not reporting especially since she wasn't at fault, I wasn't aware the police do this

The collision reporting center only informs you insurance if you sign a paper giving them permission. If you don't sign that paper they aren't allowed to.

I reported something to cover my ass this winter and told them not inform my insurance they said as long as the paper wasn't signed I'm good.

They may not inform the insurance but surely insurance has a way of finding out (which they will, when they need to). You may be happy now paying a lower premium but you may in fact be paying for nothing since it would be void in a claim anyway.

That's partially why I asked my question, since I can see a case from the point of view of the insurance company: your policy fee is based on a risk assessment and if you hide things from them, you've misrepresented the risk, in which case the contract should be void... but I don't know for a fact.

Hey hockeyfan, somewhat OT but I've always wondered this, having been told by someone outside of the industry. Is it in fact true that the onus of reporting is on you? Like if I get a speeding ticket, do I have to tell the insurance company? I know people just keep quiet and are happy that their renewal comes with no premium change. Is it because the ins company doesn't know and can they then deny a claim saying hey you didn't report a ticket, the underwriting for you then is void, goodbye?

When you set up a new policy you must report all details as it truly is: all claims, all convictions, all drivers, the actual use; who drives which and for what? (pleasure, commute, or business). etc...

During your policy term you are required to advise your company when there is a "material change in risk" (ie: who, where or what you use the vehicle for, changes etc...). Things like: you are now commuting 45km to work when previously you did a lesser distance or no commute at all, you are moving, your child will be driving more frequently then yourself, or you will be delivering pizzas. This would also include if your licence was suspended or revoked. (usually, this is reported to the company along with a request to cancel the policy as the vehicle will not be used or a request to add a driver who will assume use of the vehicle)

If you have an accident or get a ticket during the policy term, the company cannot adjust the rate until renewal, even if you called to report it to them.

Convictions are confusing; there are administrative, moving, and non-moving violations, offence date and conviction date... it's too much to expect a client to decipher.
Once you are a client of a company, they will determine how often they want to check your record. There is a cost associated with checking, so many companies only check every 3 or 5 years. The high risk companies check MUCH more frequently, for obvious reasons.

Quote:

Originally Posted by Arash

They had verbally told the ins company she won't be driving, never signed a paper on it. If the police report is going to the insurance company anyways then I guess there is no point not reporting especially since she wasn't at fault, I wasn't aware the police do this

Thanks

Even if the collision reporting centre or police don't send it directly, the two insurance companies' first order of business is to contact each other to compare notes and discuss fault determination.

Any company that doesn't request a signed document is likely recording the conversations which can be more damning then the document itself.

It's also worth noting that when you agree to a policy with a company you are also granting them the right of investigation. (like contacting your kids high school to see if they applied for a parking permit, or the security desk at your condo to see how often a car was actually parked there.)